Figure 4-4 Figure 4-4 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18.
-Refer to Figure 4-4. What is the value of the deadweight loss at the equilibrium price of $15?

Question

Figure 4-4  Figure 4-4 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18.
-Refer to Figure 4-4. What is the value of the deadweight loss at the equilibrium price of $15?

Quizplus · Accepted Answer

At the equilibrium price of $15, the market is in balance, meaning there is no deadweight loss as supply equals demand.

Figure 4-4 Figure 4-4 Shows the Market for Tiger